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PVR INOX to Divest 4700BC Stake to Marico for INR 226.8 Crore
PVR INOX has entered into a definitive agreement to sell its entire stake in Zea Maize Private Limited (4700BC brand) to Marico Limited for an all-cash consideration of INR 226.8 crore. This divestment is a strategic move to unlock shareholder value and reallocate capital toward the company's core cinema exhibition business. The transaction is expected to be accretive to PVR INOX's profit, free cash flow, and return ratios. Importantly, the company confirmed that this sale will have no material impact on its existing in-cinema food and beverage revenues.
Key Highlights
Monetization of entire stake in Zea Maize Private Limited (4700BC) for INR 226.8 crore
All-cash transaction with FMCG leader Marico Limited to strengthen the balance sheet
Strategic exit from a non-core asset to focus resources on the core cinema exhibition business
Expected to improve overall return ratios and free cash flow for PVR INOX
No material impact on the company's internal in-cinema F&B growth trajectory
💼 Action for Investors
Investors should view this as a positive development as it provides a significant cash infusion and allows the management to focus on the core business. The deal helps in deleveraging the balance sheet and improving capital efficiency.
PVR INOX to sell 93.27% stake in 4700BC brand owner ZMPL to Marico for ₹226.8 Crore
PVR INOX has approved the sale of its entire 93.27% stake in Zea Maize Private Limited (ZMPL), which owns the gourmet popcorn brand '4700BC', to Marico Limited. The transaction is valued at ₹226.8 Crore, providing a significant cash infusion for a non-core asset. ZMPL contributed approximately 1.71% (₹98.66 Cr) to PVR INOX's turnover and 0.42% to its net worth in the last financial year. This divestment allows the company to focus on its core cinema exhibition business while unlocking value from its subsidiary.
Key Highlights
Divestment of 93.27% stake in Zea Maize Private Limited (ZMPL) to Marico Limited
Total consideration for the sale is fixed at ₹226.8 Crore
ZMPL reported a turnover of ₹98.66 Crore (1.71% of PVR INOX total) in the last FY
Transaction expected to be completed within 30 days from January 26, 2026
ZMPL's net worth contribution was ₹29.53 Crore, representing 0.42% of the parent company
💼 Action for Investors
Investors should view this as a positive move to streamline the business and strengthen the balance sheet through the monetization of a non-core asset. The proceeds can be effectively redeployed into the core cinema exhibition segment or used for debt reduction.